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3115. Optimal Processing and Pricing Policies in a Mobile Phone Refurbishment System
Invited abstract in session TD-23: Remanufacturing and refurbishing operations, stream Circular Economy, Remanufacturing and Recycling .
Tuesday, 14:30-16:00Room: 82 (building: 116)
Authors (first author is the speaker)
| 1. | Osman Kulak
|
| TUM School of Management, Technical University of Munich | |
| 2. | Martin Grunow
|
| TUM School of Management, Technical University of Munich |
Abstract
The market for refurbished phones provides significant opportunities for efficiently reusing scarce resources and grows rapidly. In such a circular supply chain system, purchasing, refurbishment, and sales are directly affected by a highly dynamic environment with fluctuating prices and demands. To maximize the long-term average profit in the refurbishment system, determination of the optimal purchasing, processing, and sales strategies is required. We propose a linear programming formulation for a Markov Decision Process that considers the arrival of multiple-raw materials and investigate how the sales price and purchasing price variations, the correlation between sales and purchasing prices, and limited capacities for semi-finished and finished goods inventory and for refurbishment affect the considered supply chain for refurbished mobile phones. Our numerical experiments use industry data and lead to critical managerial insights for our industry partner.
Keywords
- Supply Chain Management
- Revenue Management and Pricing
- Industrial Optimization
Status: accepted
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